Concerns about Crypto Assets Trading and Fund Security

Recently, some Crypto Assets investors have encountered bank card freezes after selling digital assets (especially USDT), and even being asked to cooperate with investigations. This article will delve into the reasons, potential risks, and coping strategies related to this phenomenon.

The Legal Status of Holding Crypto Assets

First of all, we need to clarify one point: in our country, simply holding Crypto Assets is not illegal. Currently, there are no laws or administrative regulations directly related to Crypto Assets in place. Although some normative documents impose restrictions on related activities, these documents do not explicitly prohibit individuals from holding Crypto Assets.

Risks Associated with Selling Crypto Assets

So, why does selling Crypto Assets trigger bank card freezing and investigations? The main reasons are as follows:

1. The irregularity of trading channels

Some unofficial trading platforms may be associated with criminals, leading investors to receive funds of unknown origin without their knowledge. If a bank detects suspicious transactions in an account, it will take freezing measures.

2. The Trap of High Returns

Some so-called "high-return" trades often involve underground money laundering operations. These institutions may collaborate with illegal platforms, using dirty funds, thereby posing legal risks to investors.

3. Improper personal behavior

Some investors may have difficulty explaining the sources of their income or may participate in marginal activities, which increases the uncertainty of the sources of funds and makes it more difficult to unfreeze.

Legal Risks in Cooperation with Investigations

Generally, simple Crypto Assets trading does not lead to criminal penalties. However, if an investor has a special relationship with illegal sources of funds, or knowingly participates in transactions with improper sources of funds, they may face charges of "concealing or disguising criminal proceeds" or "aiding and abetting information network crime activities."

Coping Strategies

In case of a bank card freeze or being asked to assist in an investigation, it is recommended to take the following measures:

1. Self-assess risks and confirm whether any misconduct exists.
2. Communicate with the bank to understand the details of the freeze and obtain the relevant transaction records.
3. Contact the trading platform to request transaction records.
4. Prepare a detailed statement explaining the source of funds and the transaction process.
5. If you need to cooperate with the investigation, it is recommended to consult a professional lawyer first.

Conclusion

It is crucial to remain calm in the face of bank card freezing. Even if the funds are confirmed to be illicit, as long as the investor can prove their good intentions, they typically will not face criminal charges. However, there is still a possibility of having some or all of the funds reclaimed. I hope all digital currency investors can trade safely and stay away from risks.